scholarly journals Determinants of Arrears in the Municipal Savings Banks, Rural Savings Banks and EDPYMES of Peru

2020 ◽  
Vol 11 (4) ◽  
pp. 523
Author(s):  
Margarita Elluz Calle Arancibia ◽  
Wagner Enoc Vicente Ramos ◽  
Gustavo Ilich Loayza Acosta
Keyword(s):  
Agricultural Sector ◽  
Econometric Model ◽  
Working Capital ◽  
Accounts Receivable ◽  
Savings Banks ◽  
Accounts Payable ◽  
The Relationship

The objective this paper is analyzed the relationship between the administration of the working capital and the profitability of assets of the companies of the Peruvian agricultural sector of the period 2009-2018. Through an econometric model it was obtained that the ROA is significantly related to the PPI (p <0.05), PPC (p <0.05) and PPP (p <0.10). This indicates that the profitability of these companies depends on the application of appropriate policies regarding their inventories, accounts receivable and accounts payable.

scholarly journals The role of education, knowledge and human resources for the agricultural development in the perspective of new cap: an hypothesis of change in Basilicata

2012 ◽  
Vol 6 (1-2) ◽  
pp. 123-129 ◽  
Author(s):  
F. Contò ◽  
M. Fiore ◽  
P. La Sala ◽  
P. Papapietro
Keyword(s):  
Human Resources ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Econometric Model ◽  
Italian Region ◽  
Network Education ◽  
Dummy Variable ◽  
New Models ◽  
The Relationship

The role of education, knowledge and human resources in the agribusiness becomes of primary importance for the development of agricultural sector and, more generally, of the territory. The main objective of the present paper is to verify the role of investment in human resources and, consequently, in services for the agricultural development for the dynamics of rural development, trade and international cooperation of agribusiness.After a literature review, the paper firstly analyses the characteristics of the Italian Region of Basilicata, selected for our empirical application, and secondly develops an econometric model to explain the relationship between the rural GDP and a set of economic variables and of network-education-social (NES) dummy variable. These NES is representative of social, educational and, network factors, describing the degree of openness of the region firm. As expected, the results show that farmers may act as engines for economic development when they are trained on the basis of the needs and requirements related to innovation and research, and they are assisted through new models of organization of agricultural services.

scholarly journals CURRENT ASSETS OF THE ENTERPRISE: THEORETICAL AND PRACTICAL ASPECTS

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
N. Kuprina ◽  
I. Chernenko
Keyword(s):  
Food Industry ◽  
Working Capital ◽  
Accounts Receivable ◽  
Concepts And Categories ◽  
Composition Structure ◽  
The Relationship

In the article the concepts and categories of nature of the categories "current assets", "workingcapital", "current funds" have been examined and investigated the relationship between these categoriesand approaches to classification of current assets of enterprise that are presented in the publications ofdomestic and foreign scientists. The have been investigated analysis of composition, structure anddynamics of the working capital of an enterprise and its separate elements were made for four years,which is invested in its current assets based on the data of food industry enterprises of Odesa region.Estimation of the effect of turnover of enterprise working capital invested in accounts receivable andreserves on liquidity of current assets has been was made. The ways of increasing efficiency of currentassets use in PLC “Odesaconditer” were proposed.

How does working capital management affect the profitability of Vietnamese small- and medium-sized enterprises?

2017 ◽  
Vol 24 (1) ◽  
pp. 2-11 ◽  
Author(s):  
Hien Tran ◽  
Malcolm Abbott ◽  
Chee Jin Yap
Keyword(s):  
Global Economy ◽  
Capital Investment ◽  
Raw Materials ◽  
Optimal Level ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Content Type ◽  
Accounts Receivable ◽  
Accounts Payable

Purpose Well-designed and implemented working capital management (WCM) will encourage positive returns for a business and establish the firm’s value, while ineffective management will undoubtedly lead to failure of the enterprise. The paper aims to discuss these issues. Design/methodology/approach In business, fixed capital and working capital are the two main forms of capital used. The current assets used in the business as working capital for day-to-day operations include raw materials, work in progress, finished goods, bills receivable, cash and bank balance. This paper analyses the relationship between WCM and profitability in Vietnamese small- and medium-sized enterprises (SMEs) after integration into the global economy. Findings The results suggest that SME owner-managers can increase their firm’s profitability by reducing the number of days of accounts receivable, accounts inventories and accounts payable to an optimal minimum. In addition, a robustness check of this study indicates that high profitability will be achieved, with an optimal level of working capital investment in accounts inventories, accounts receivable and accounts payable. Originality/value No work of this sort has been applied to Vietnamese circumstances. It is also rare in SE Asia more generally.

Effect of Working Capital on Profitability of Selected Quoted Firms in Nigeria

2012 ◽  
Vol 13 (3) ◽  
pp. 367-381 ◽  
Author(s):  
Olayinka Olufisayo Akinlo
Keyword(s):  
Trade Credit ◽  
Capital Management ◽  
Working Capital ◽  
Credit Policy ◽  
Inventory Policy ◽  
Working Capital Management ◽  
Accounts Receivable ◽  
Financial Firms ◽  
Cash Conversion Cycle ◽  
Accounts Payable

The article examines the relation between working capital management and profitability for a sample of 66 Nigerian non-financial firms for the period 1997–2007. Trade credit policy and inventory policy are measured by number of days accounts receivable, accounts payable and inventories; and the cash conversion cycle (CCC) is used as a comprehensive measure of working capital management. The results suggest that firm’s profitability is reduced by lengthening the number of days accounts receivable, number of days of inventory and number of days accounts payable. The result shows that shortening the CCC improves the profitability of the firms.

scholarly journals Working Capital Management dan Firm Profitability Perusahaan Sektor Manufaktur di Bursa Efek Indonesia dan Bursa Efek Filipina Periode 2014-2018

2020 ◽  
Vol 1 (1) ◽  
pp. 31-42
Author(s):  
Ricky Adiyanto ◽  
Werner Ria Murhadi ◽  
Liliana Inggrit Wijaya
Keyword(s):  
Stock Exchange ◽  
Linear Regression Method ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Accounts Payable ◽  
Conversion Period ◽  
Firm Profitability

This study aims to analyze the effect of working capital management on the profitability of companies in Indonesia and Philippines. This study uses secondary data from companies listed in Indonesia Stock Exchange and Philippines Stock Exchange in the 2014-2018 period.  The sample used in this study includes manufacturing sector companies listed in Indonesia Stock Exchange and Philippines Stock Exchange in that period. This research uses multiple linear regression method. Working capital is measured using cash conversion cycle, accounts receivable conversion period, inventories conversion period, and accounts payable deferral period. The results of the Indonesian sample show that the cash conversion cycle and its components, namely the accounts receivable conversion period, the inventories conversion period, and the accounts payable deferral period have a significant positive effect on firm profitability. For the Philippine sample, the result of the study show that the cash conversion cycle and its components does not have a significant effect on firm profitability. Keywords: cash conversion cycle, accounts receivable conversion period, inventories conversion period, accounts payable deferral period

scholarly journals "DETERMINANTS OF PROFITABILITY: EVIDENCE FROM RUSSIAN AGRICULTURAL FIRMS"

2020 ◽  
Vol 13(62) (2) ◽  
pp. 167-176
Author(s):  
Deari Fitim ◽  
Alija Sadri ◽  
Valeriya V. Lakshina
Keyword(s):  
Decision Making ◽  
Agricultural Sector ◽  
Trade Credit ◽  
Working Capital ◽  
Financial Leverage ◽  
Business Decision ◽  
Leverage Ratio ◽  
Vital Importance ◽  
The Relationship

"The analysis of profitability and the factors that can influence it is of vital importance in business decision making. Thus, the purpose of this study is to examine the relationship between profitability and working capital, leverage, and net trade credit. The study is developed based on a sample of Russian firms, which operate in the agricultural sector, for the period from 2013 to 2017. The result denoted that firms were both, profitable and liquid ones, and bought more than sold on credit. Among other results, the study showed that more profitable firms operated with higher liquidity. Onward, the study suggested that firms should decrease the financial leverage ratio in order to increase profitability"

scholarly journals The Effects Of The Great Recession On Corporate Working Capital Management Practices

2012 ◽  
Vol 11 (7) ◽  
pp. 753
Author(s):  
Rakesh Duggal ◽  
Michael C. Budden
Keyword(s):  
Management Practices ◽  
Negative Relationship ◽  
Shareholder Wealth ◽  
Working Capital ◽  
Capital Theory ◽  
Accounts Receivable ◽  
The Great Recession ◽  
Cash Conversion Cycle ◽  
Accounts Payable ◽  
Firm Profitability

Working capital theory prescribes using the optimal amount of net working capital to maximize shareholder wealth. Evidence from multiple countries indicates a negative relationship between the cash conversion cycle or net working capital and firm profitability. However, severe economic conditions may force firms to change their inventory, accounts receivable, and/or accounts payable policies, causing the firms to use more/less net working capital. Taking a sample of non-financial S&P 500 firms, many of which are multinationals, this study finds significant changes in the cash conversion cycle in 2010 for some industries. Also, it appears firms in general held more net working capital in order to face new economic challenges.

Managing Economic Calculations of a Company

2015 ◽  
Vol 4 (4) ◽  
pp. 23-27
Author(s):  
Ровенский ◽  
Yu. Rovenskiy ◽  
Наточеева ◽  
N. Natocheeva ◽  
Белянчикова ◽  
...  
Keyword(s):  
Financial Performance ◽  
Debt Management ◽  
Working Capital ◽  
Credit Policy ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Enhance Efficiency ◽  
A Company ◽  
Financial Losses ◽  
Sources Of Capital

The paper considers the issues of how to manage the accounts receivable and accounts payable based on the findings of analysis of thereof. The authors propose to sort out definite stages in debt management and suggest ways to calculate the working capital amount to be allocated to accounts receivable; to assess the company financial performance, subject to the provision of onemonth and three-month discounts to debtors, and to evaluate the effect of the increase in accounts receivable in the upcoming period. All the above help to enhance efficiency of the company’s credit policy and of the accounts payables management and also allow to reduce financial losses related to attracting additional sources of capital.

EVALUATION OF FACTORING IN THE COMPANY´S ACTIVITIES IN TRANSPORT SERVICE

2016 ◽  
Vol 10 (6) ◽  
pp. 50-62
Author(s):  
Татьяна Гараева ◽  
Tatyana Garaeva ◽  
Людмила Згонник ◽  
Lyudmila Zgonnik ◽  
Инесса Романовна Романова ◽  
...  
Keyword(s):  
Limited Liability ◽  
Financial Indicators ◽  
Transport Service ◽  
Working Capital ◽  
Tax Base ◽  
Accounts Receivable ◽  
Service Company ◽  
Company Limited ◽  
Accounts Payable ◽  
The Impact

The article presents an analysis of the factoring services market at the national and global levels, and identifies the main factoring market development trends. Based on the material of transport service company, limited liability company &#34;Fairway&#34;, the authors substantiate the economic efficiency of factoring as a tool for replenishment of circulating assets of transport companies in the current economic conditions. Accumulation by factoring a number of functions is an important advantage over other forms of funding. This is especially important for small and medium-sized businesses in sphere of transport service that do not have sufficient volume of human and financial resources. Factoring allows to avoid a situation where the liability to tax on income appears before inflow of funds from the sale. Greater incentive for the factoring development for tax optimization is applying of a similar approach to the determination of the date of VAT payment. Funding within the factoring will allow Fairway to solve the problem of shortage of working capital without growth of accounts payable. Factoring has a positive effect on the financial indicators of an enterprise, such as liquidity and solvency. In general, the impact of factoring on the financial indicators of the transport service company &#34;Fairway&#34; is carried out by means of reduction of accounts receivable turnover period (shortening of the financial cycle), increasing the receivables turnover (number of turnovers), the reduction of the value of accounts receivable (release), more efficient use of working capital, increasing the coefficient of instant liquidity, reducing the tax base for income tax.

scholarly journals A reassessment of the relationship between working capital management and firm performance: evidence from non-financial companies in Nigeria

2018 ◽  
Vol 15 (3) ◽  
pp. 249-266
Author(s):  
Sunday Simon ◽  
Norfaiezah Sawandi ◽  
Mohamad Ali Abdul-Hamid
Keyword(s):  
Firm Performance ◽  
Inventory Management ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Working Capital Management ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Accounts Payable ◽  
The Relationship

This paper reassesses the relationship between working capital management (WCM) and firm performance in the Nigerian context. The study is motivated by the limited insights available on the impacts of WCM on firm performance in the country. To date, most studies from Nigeria have been largely descriptive and focused on a small sample size that is non-representative of the population. In addition, there are limited rigorous statistical analyses involved in such studies. This paper addresses the methodological limitations apparent in prior literature and provides a better understanding of the relationship between WCM and firm performance, revealing how firms can manage their operations more profitably. The paper adopts a panel data regression analysis on a sample of 75 non-financial firms listed on the Nigerian Stock Exchange from 2007 to 2015. The results of the analyses showed that WCM variables have an inconsistent relationship with the measures of performance adopted, which were return on assets and Tobin’s Q. Specifically, accounts receivable management and inventory management were negatively associated with the return on assets, while accounts payable management, cash conversion cycle and cash conversion efficiency were positively associated with return on assets. Additionally, accounts receivable management and inventory management were positively associated with Tobin’s Q, whereas accounts payable management, cash conversion cycle and cash conversion efficiency were negatively associated with Tobin’s Q. These results were found to be robust using quantile regression. The results of the quantile regression showed inconsistency across the various quantiles used (0.10, 0.25, 0.50 and 0.75). These findings have two important implications. The first is that WCM variables influence the performance of firms. The second is that the mixed findings partly indicate that firms and managers must understand and formulate WCM policies that reflect their peculiar conditions.

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